(News Bulletin 247) – Berenberg announced on Wednesday that it had downgraded its recommendation on Tesla, reduced from ‘buy’ to ‘hold’, with an adjusted price target of 200 to 210 dollars.
In a research note, the middleman backs up his downgrade with the fact that his buy-on-value thesis – which he believed was based on the misguided bet of a brewing price war – is now largely endorsed by the market.
“We assumed that Tesla could still gain market share with a gross margin of around 25% (…), a prospect that investors now seem to be integrating by 2025,” he continues.
Berenberg mainly justifies its downgrading by an upward potential considered much more limited knowing that the title has recovered 21% since its recommendation increase on the action, which dated from January.
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